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Toyota Highlander HybridToyota Highlander Hybrid 2005 Tax Deduction
The Toyota Highlander Hybrid qualifies for the 2005 $2000 tax deduction. How much this tax deduction will ultimately put back into your pocket depends on a number of factors including your tax bracket. For the vast majority of people, the Toyota Highlander Hybrid tax deduction will come somewhere between $300 and $600 in savings off of their taxes.
In order to claim the tax deduction for the Toyota Highlander Hybrid car, you must use form 1040 when filing you taxes (if you use the shorter forms you will not be able to claim this deduction). You do not, however, have to itemize (schedule A) your deductions to claim this deduction. Instead, write "Clean-Fuel $2,000" on the dotted line of line 35. Make sure to include this amount in that line's total adjustments to income.
The deduction for the Toyota Highlander Hybrid car is a one-time deal and must be taken the year the car was actually put into use. The tax deduction will not be available after this year (the deduction will become a credit). The deduction also only applies to the original owner of the Toyota Highlander Hybrid car so if you purchased your Toyota Highlander Hybrid second hand, it does not qualify.
For more information, you can visit the IRS Website
Toyota Highlander Hybrid 2006 Tax Credit
Both the Toyota Highlander Hybrid 2-wheel-drive and Toyota Highlander Hybrid 4-wheel drive models qualify for the 2006 tax credit. The exact amount of the credit is not currently known. The ACEEE took "the best available information" and made estimated calculations on what the credit will be for the 2006 models. Since 2005 car information was used, the actual credit will likely vary from the numbers below. The ACEEE estimates the following tax credit for the Toyota Highlander Hybrids:
Toyota Highlander Hybrid (2wd): $2,600
Toyota Highlander Hybrid (4wd): $2,200
For more information on how these estimates were determined, visit aceee.org
The tax credit for the Toyota Highlander 2-wheel-drive and 4-wheel-drive hybrid models are available from 2006 through 2010. Toyota Highlander Hybrid car models placed in service before January 1, 2006 are not eligible for the tax credit, but may be eligible for the 2005 tax deduction.
While the tax credit is good through 2010, the tax credit comes with a 60,000 vehicle limit per manufacturer. This means nobody knows exactly how long the tax credit will be available for the Toyota Highlander hybrid models. Here is how the tax credit is determined:
Until the 60,000th hybrid car is sold by Toyota: 100%
The following the quarter after which the 60,000th Toyota hybrid is sold: 100%
The subsequent two quarters (6 months) thereafter: 50%
The subsequent two quarters (6 months) thereafter: 25%
After the four quarters (one year) of reduced credits (50% and 25%), the tax credits will no longer be available for vehicles sold by Toyota.Previous: Toyota Prius Hybrid | Next: Honda Insight Hybrid
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